Monday's Headlines: Don't Bet Against Buffett

Monday's Headlines: Don't Bet Against Buffett

Here were the biggest movers in the MyWallSt shortlist on Friday:

Moving Up ⬆️ (BILL) +13.8%

Chuy's (CHUY) +12.3%

Datadog (DDOG) +11.1%

GoPro (GPRO) +7.9%

Tripadvisor (TRIP) +7.9%

Moving Down ⬇️

Peloton Interactive (PTON) -35.3%

Cognex (CGNX) -13.5%

Avalara (AVLR) -8.8%

Zoom Communications (ZM) -6.2%

DocuSign (DOCU) -5.8%

1. Berkshire Hathaway (BRK.B) reported strong earnings for Q3, citing a steady recovery from pandemic levels and a rebound in the utilities, railroad, and energy industries. Operating income was up 18% at $6.47 billion v.s. $5.48 billion from a year earlier. Berkshire engaged in $7.6 billion worth of share buybacks last quarter, bringing the total value of shares repurchased in 2021 to $20.2 billion. This indicates the firm still believes its shares are undervalued, however, CEO Warren Buffett reminds investors “investment gains/losses in any given quarter is usually meaningless”. Berkshire has also hit a new all-time record in relation to cash held at $149.2 billion, ready to deploy when the opportunity arises. Read more here.

2. DraftKing’s (DKNG) remains a betting favorite as the company continues its U.S. expansion. The company now operates in 15 states, capturing 29% of the population, and over 25 states have introduced legislation on mobile sports betting, iGaming, and poker. Revenue for the quarter came in at $213 million, up 60% from last year, and monthly unique players (MUPs) was up 30%, with a whopping 1.3 million MUPs on the platform for each month of Q3. DraftKing’s also upped its midpoint guidance which will represent a 93%-99% increase in annual revenue growth. New product offerings continue, with an NFT marketplace, micro betting for MLS, NBA, and college football among others being introduced this quarter. Read the full report here.

3. Meta Platforms Inc. (FB) — that’s going to take some getting used to — will be launching its first-ever retail stores as it leverages the billions of users on its Facebook, Whatsapp and Instagram platforms. The company has disbanded its Oculus brand, with its new hardware headset going under the name 'Meta Quest' as it features in stores for customers to test and interact with. Originally, Mark Zuckerberg sought to dominate the market, however, last week he spoke on the interoperability of its platform, which makes sense given the infrastructure required to build its platform. The laser focus is there nonetheless, as Meta continues to invest billions of dollars in research and development. Read more here.

One more earnings from last night:

Howard Hughes Corp (HHC)

The Texas real estate giant posted strong third-quarter earnings last Friday, resulting in a substantial rise in share prices. The reported adjusted earnings per share (EPS) of $0.07 against analyst estimates of -$0.25, on revenue of $219.19 million. “Our strong third-quarter results across all of our business segments demonstrate HHC's continued momentum and the robust demand we are experiencing across our acclaimed portfolio of mixed-use communities,” said the shareholder letter. Read more here.

There are 3 companies on the MyWallSt shortlist that will report earnings today:

Lemonade (LMND)
PayPal (PYPL)
The Trade Desk (TTD)

Get this week’s full earnings calendar here.

David GranahanDavid Granahan